Corrective Action Plans

Finding 1164890 (2025-001)

Material Weakness 2025

National Church Residences of Bolivar, Tn D/b/a Pecan Grove

OH

HUD Housing Programs Procurement, Suspension & Debarment

Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are returne...

Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are returned timely. Contact person responsible for corrective action: Sean Alexander, Vice President – Housing Accounting Completion Date: August 15, 2025

View Audit 374801

Finding 1164841 (2025-001)

Material Weakness 2025

Melrose Mindoro School District

WI

Internal Control / Segregation of Duties HUD Housing Programs

2025-001 Segregation of Duties; District management is cognizant of their internal control structure and continues to evaluate cost effective opportunities to further improve segregation of duties. In addition, they will continue to closely monitor the financial operations of the District.

View Audit 374672

Finding 1164820 (2025-001)

Material Weakness 2025

National Church Residences of South River, Nj D/b/a Willett Manor

OH

HUD Housing Programs Procurement, Suspension & Debarment

Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded, and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are return...

Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded, and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are returned timely. Contact person responsible for corrective action: Sean Alexander, Vice President – Housing Accounting Completion Date: August 11, 2025

View Audit 374642

Finding 1164818 (2025-001)

Material Weakness 2025

Housing Authority of Brevard County

FL

HUD Housing Programs

2025-001 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream – Vouchers CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2024-001 from March 31, 2024 (initially occurred as Finding 2021-00...

2025-001 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream – Vouchers CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2024-001 from March 31, 2024 (initially occurred as Finding 2021-003, Significant Deficiency) Condition: Out of a total tenant population of approximately 1,849 tenants, 25 files were selected for testing. Exceptions were noted as follows: • 3 tenant file errors where there was no EIV form for the recertification period. • 1 tenant file error where the Form 50058 reported an incorrect utility allowance, and correcting the allowance would decrease the HAP rent from $1,179 to $1,174. • 1 tenant file error where the authority stated they did not have the lease on file. • 1 tenant file error where the Form 50058 reported an incorrect utility allowance, and correcting the allowance would increase the HAP rent from $731 to $751. • 1 tenant file had the following errors and correcting the errors would increase the HAP rent from $740 to $820: o An incorrect utility allowance was reported on the Form 50058. o Tenant’s social security income was miscalculated and reported incorrectly on the Form 50058. • 1 tenant file error where the Form 50058 reported an incorrect utility allowance, and correcting the allowance would decrease the HAP rent from $851 to $789. • 1 tenant file error where the Form 50058 reported an incorrect utility allowance, and correcting the allowance would increase the HAP rent from $986 to $1,016. • 1 tenant file had the following errors: o No EIV form on file for the recertification period. o Income support was not obtained by the Authority. • 1 tenant file error where tenant wage income was calculated incorrectly. Correcting the income issue would increase the HAP rent from $1,604 to $1,625. Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken: We concur with the recommendation. Due to transitioning the Authority’s core management software from Tenmast to Yardi and related staff absences and turnover, we were unable to provide an ongoing quality control review processes and provide ongoing staff training and timely management reviews. We are focused on implementing such procedures and will review staffing levels, skill sets, and case load for each employee.

View Audit 374631

Finding 1164801 (2025-001)

Material Weakness 2025

Germantown Home Section 202 Corporation T/a the Apartments on the Germantown Home Campus

PA

HUD Housing Programs Matching / Level of Effort / Earmarking

Information on Federal Program Federal Grantor: U.S. Department of Housing and Urban Development Program: Section 202 Capital Advance, Project Rental Assistance Payments (PRAC) Assistance Listing #: 14.157 Title: Supportive Housing for the Elderly Audit Period: July 1, 2024- June 30, 2025 Recommenda...

Information on Federal Program Federal Grantor: U.S. Department of Housing and Urban Development Program: Section 202 Capital Advance, Project Rental Assistance Payments (PRAC) Assistance Listing #: 14.157 Title: Supportive Housing for the Elderly Audit Period: July 1, 2024- June 30, 2025 Recommendation- We recommend that management establish internal controls to ensure annual recertifications are completed and processed timely. We also recommend that targeted training be provided to the individuals responsible for processing annual tenant recertifications. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To address the finding, management has enhanced the review process whereby all tenant recertifications will be submitted to the Compliance Officer for review and approval prior to the effective date. In addition, a centralized tracking log will be maintained to monitor upcoming and completed recertifications, reducing the risk of delays or omissions. In the event of a management vacancy, the Compliance Officer will assume responsibility for ensuring all recertifications are processed timely. Name of contact person responsible for corrective action: Michael DeMarco, CFO / VP Finance Email: MDeMarco@NewCourtland.org

View Audit 374604

Finding 1164795 (2025-001)

Material Weakness 2025

North Dakota Housing Finance Agency

ND

HUD Housing Programs Matching / Level of Effort / Earmarking

Corrective Action Plan: 1. System Remediation: Our servicing software payo􀆯 logic has been corrected to ensure no excess escrow mortgage insurance funds are held back at payo􀆯. Fix date: August 12, 2025 2. Sta􀆯 Training: Provide training to escrow and payo􀆯 sta􀆯 on the updated process and system cha...

Corrective Action Plan: 1. System Remediation: Our servicing software payo􀆯 logic has been corrected to ensure no excess escrow mortgage insurance funds are held back at payo􀆯. Fix date: August 12, 2025 2. Sta􀆯 Training: Provide training to escrow and payo􀆯 sta􀆯 on the updated process and system changes, emphasizing regulatory requirements for escrow refund timeliness. 3. Monitoring: The existing control report used to identify escrow surpluses postpayo 􀆯 will now be run on a bi-monthly basis instead of monthly. 4. Accountability: The Servicing Coordinator will oversee corrective actions and provide periodic reporting to compliance and senior management. Target Completion Date: October 30, 2025 Responsible Party: Austin Ketterling, Servicing Coordinator

View Audit 374600

Finding 1164790 (2025-001)

Material Weakness 2025

Winnebago County Housing Authority

IL

HUD Housing Programs Internal Control / Segregation of Duties

Finding 2025-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance and Significant Deficiency Moving To Work Demonstration - subsidy ALN 14.881 Corrective Action Plan: The finding appeared to be related to staff turnover at a specific prog...

Finding 2025-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance and Significant Deficiency Moving To Work Demonstration - subsidy ALN 14.881 Corrective Action Plan: The finding appeared to be related to staff turnover at a specific program. WCHA will follow the auditor's recommendation that the random sampling of files be commensurate to such areas that may benefit from increased quality control scrutiny. Ongoing comprehensive training of HUD regulations is provided to staff. Person Responsible: This internal control hasbeen assigned to the Business Executive Assistant, Marnie Buttacavoli. This person reports to the Finance Director and Deputy Director and is independent of all other staff. Anticipated Completion Date: This has been implemented as of 10/23/25.

View Audit 374593

Finding 1164705 (2025-005)

Material Weakness 2025

Housing Authority of the City of Lumberton

NC

Questioned Costs HUD Housing Programs

The Authority agrees with the finding. For the file in question, the utility reimbursement payment was rolled over from the prior software. During the recertification process, the new software reflected the information reported in the prior system. The Authority is working with the new software to a...

The Authority agrees with the finding. For the file in question, the utility reimbursement payment was rolled over from the prior software. During the recertification process, the new software reflected the information reported in the prior system. The Authority is working with the new software to address and resolve this issue.

View Audit 374404 Questioned Costs: $1

Finding 1164704 (2025-004)

Material Weakness 2025

Housing Authority of the City of Lumberton

NC

Questioned Costs HUD Housing Programs

The Authority agrees with the finding. The Authority has implemented procedures to properly budget all expenditures. The Finance team will monitor and recommend updates to the budget monthly as spending needs arise.

View Audit 374404 Questioned Costs: $1

Finding 1164703 (2025-003)

Material Weakness 2025

Housing Authority of the City of Lumberton

NC

Questioned Costs HUD Housing Programs

The Authority agrees with the finding. This error was corrected in July, 2025. The Authority has conducted refresher training with staff members to emphasize the requirements to use gross wages when determining annual income. Supervisors will continue to review income verifications and have been dir...

The Authority agrees with the finding. This error was corrected in July, 2025. The Authority has conducted refresher training with staff members to emphasize the requirements to use gross wages when determining annual income. Supervisors will continue to review income verifications and have been directed to place additional focus on wage calculations during quality control checks. Updated internal checklists have been distributed to guide staff in verifying income amounts consistently.

View Audit 374404 Questioned Costs: $1

Finding 1164702 (2025-002)

Material Weakness 2025

Housing Authority of the City of Lumberton

NC

Questioned Costs HUD Housing Programs

The Authority agrees with the finding. This error was corrected in July, 2025. The Authority has conducted refresher training with staff members to emphasize the requirements to use current Social Security benefit verification when determining annual income. Supervisors will continue to review incom...

The Authority agrees with the finding. This error was corrected in July, 2025. The Authority has conducted refresher training with staff members to emphasize the requirements to use current Social Security benefit verification when determining annual income. Supervisors will continue to review income verifications and have been directed to place additional focus on verifying that Social Security documentation is current and accurately applied during quality control checks.

View Audit 374404 Questioned Costs: $1

Finding 1164697 (2025-003)

Material Weakness 2025

Housing Authority of Meridian

MS

Questioned Costs Eligibility HUD Housing Programs

Income Eligibility Audit Finding Response: Over-Income Eligibility Determination Finding: During the audit review, it was identified that the Authority erroneously assigned a unit to a potential tenant whose initial income exceeded the program's income eligibility threshold. Although the applicant's...

Income Eligibility Audit Finding Response: Over-Income Eligibility Determination Finding: During the audit review, it was identified that the Authority erroneously assigned a unit to a potential tenant whose initial income exceeded the program's income eligibility threshold. Although the applicant's income subsequently decreased prior to move-in, the Authority acknowledges that eligibility should have been confirmed and properly documented before final unit assignment. The tenant vacated the unit within six (6) months of occupancy. Authority Response: The Meridian Housing Authority (MHA) acknowledges the error in processing the applicant's income eligibility determination and recognizes that the assignment did not fully comply with HUD's established income verification and eligibility requirements. The Authority has reviewed the circumstances surrounding this incident and has determined that the error resulted from a timing and documentation oversight during the final verification phase. Corrective Action Taken: I. Immediate Case Review: The applicant's file was reviewed to verify all documentation and identify procedural gaps that led to the incorrect eligibility determination. 2. Staff Retraining: All occupancy and eligibility staff have been retrained on HUD income eligibility requirements, verification standards, and documentation retention procedures. 3. Revised Verification Protocol: The Authority has implemented an additional pre-move-in eligibility verification checkpoint to confirm applicant income status immediately prior to lease execution, and integration of a final income eligibility checklist into all applicant files. 4. Supervisory Review Requirement: A management-level review and approval is now required for all move-in certifications where an applicant's income falls near the program threshold. 5. Monitoring and Compliance Audit: Internal quality control reviews will be conducted quarterly to ensure continued compliance with HUD eligibility and verification standards. Anticipated Completion Date: Cunently in progress and will be completed by 3/31/2026 and ongomg. Contact Person: Ronald J. Turner, Sr. 2425 E Street, Meridian, MS 39301 601-693-4285

View Audit 374385 Questioned Costs: $1

Finding 1164683 (2025-002)

Material Weakness 2025

Warren County School District R3

MO

Allowable Costs / Cost Principles HUD Housing Programs Reporting § 200.333

The District agrees with this finding and will implement the following:  Data Integrity Verification: o Implement a data review process to ensure data completeness and accuracy prior to sampling.  Staff Training: o Conduct training sessions for staff involved to ensure the accuracy of the populati...

The District agrees with this finding and will implement the following:  Data Integrity Verification: o Implement a data review process to ensure data completeness and accuracy prior to sampling.  Staff Training: o Conduct training sessions for staff involved to ensure the accuracy of the population used to calculate and select samples.  Internal Review Process o Establish manual review process to confirm all required documentation and applications are retained and accurately represent the population.

View Audit 374324

Finding 1164656 (2025-001)

Material Weakness 2025

Stoneboro Development Corporation 033-11048

PA

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment

Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN December 2, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Correct...

Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN December 2, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2025. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2025 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2025-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2025-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, in July 2025, the Corporation executed a reinstatement agreement with the lender to make additional monthly mortgage payments of $1,000 through May 2026 to bring the mortgage to current. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent

View Audit 374286 Questioned Costs: $1

Finding 1164561 (2025-002)

Material Weakness 2025

Ginseng Board of Wisconsin, Inc.

WI

HUD Housing Programs Internal Control / Segregation of Duties

This finding will not completely resolve itself given the cost/benefits basis the Organization continues to base this decision on.

View Audit 374129

Finding 1164525 (2025-001)

Material Weakness 2025

Bourne Housing Authority

MA

HUD Housing Programs Reporting Significant Deficiency

CORRECTIVE ACTION PLAN 2025-001 – REPORTING AND SPECIAL TESTS: Auditee’s Response and Planned Corrective Action Planned Implementation In Response to our 2025 Audit, it was noted that Bourne Housing Authority’s SEMAP report was not sent in a timely manner. The new Executive Director at that time was...

CORRECTIVE ACTION PLAN 2025-001 – REPORTING AND SPECIAL TESTS: Auditee’s Response and Planned Corrective Action Planned Implementation In Response to our 2025 Audit, it was noted that Bourne Housing Authority’s SEMAP report was not sent in a timely manner. The new Executive Director at that time was not aware it was due to be done due to the recent turnover and staffing. We have already started putting together our next SEMAP so that we are ahead of the game and will work with the HCVP administrator on this reporting. Bourne Housing Authority plans to be on time with reporting moving forward Person Responsible for Corrective Action: Kara Galasso Garcia, Executive Director and the Admin for HCVP

View Audit 374098

Finding 1164510 (2025-001)

Material Weakness 2025

Middletown Housing Authority

CT

Questioned Costs HUD Housing Programs Eligibility

Corrective Action MHA is now fully staffed with a current recertification reporting rate of over 96%. New staff members have been hired, trained and fully onboarded. An outside consultant was retained prior to staff hiring and processed all delinquent recertifications in the spring of 2025. Addition...

Corrective Action MHA is now fully staffed with a current recertification reporting rate of over 96%. New staff members have been hired, trained and fully onboarded. An outside consultant was retained prior to staff hiring and processed all delinquent recertifications in the spring of 2025. Additional staff training is being scheduled. Increased quality control procedures are being designed and implemented in coordination with a consultant to ensure ongoing activities meet Authority standards as well as Federal requirements.

View Audit 374083 Questioned Costs: $1

Finding 1164469 (2025-001)

Material Weakness 2025

Downey Unified School District

CA

Student Financial Aid Procurement, Suspension & Debarment HUD Housing Programs

The Downey Adult School (DAS) concurs with the audit finding and to prevent future occurences, the school has purchased a new student database management software system (Campus Café) that articulates with the National Student Loan Data System (NSLDS) in reviewing, updating, verifying, and reporting...

The Downey Adult School (DAS) concurs with the audit finding and to prevent future occurences, the school has purchased a new student database management software system (Campus Café) that articulates with the National Student Loan Data System (NSLDS) in reviewing, updating, verifying, and reporting student enrollment statuses, program information, and effective starting and ending dates that are required to appear on the Enrollment Reporting Roster file, this new process of enrollment and certification eliminated the potential for human errors by obtaining student information data derived directly from the Student Information System (SIS). In addition, DAS continues to work with its SIS, Campus Cafe, to electronically integrate with the Nation Clearing House, specifically with direct transmission of enrollment and certification reporting. The current processes of enrollment and certification reporting will be eliminated and replaced with processes of direct enrollment and certification reporting from the SIS to the National Clearing House, then to NSLDS. The contact person responsible for the implementation of this action plan, to correct State Finding 2025-001, is Ms. Blanca Rochin, Downey Adult School Principal. Implementation Date: August 18, 2025

View Audit 374010

Finding 1164431 (2025-002)

Material Weakness 2025

Clinton Ecumenical North INC

IA

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Tenant files have not regularly been reviewed for QC. Management will immediately set up regular reviewing of random files to be sure files are processed correctly and rents are being calculated according to HUD guidelines. Management agrees with the finding and takes the recommendations of the audi...

Tenant files have not regularly been reviewed for QC. Management will immediately set up regular reviewing of random files to be sure files are processed correctly and rents are being calculated according to HUD guidelines. Management agrees with the finding and takes the recommendations of the auditor to correct it.

View Audit 373871

Finding 1164429 (2025-002)

Material Weakness 2025

Clinton Ecumenical Housing INC

IA

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Tenant files have not regularly been reviewed for QC. Management will immediately set up regular reviewing of random files to be sure files are processed correctly and rents are being calculated according to HUD guidelines. Management agrees with the finding and takes the recommendations of the audi...

Tenant files have not regularly been reviewed for QC. Management will immediately set up regular reviewing of random files to be sure files are processed correctly and rents are being calculated according to HUD guidelines. Management agrees with the finding and takes the recommendations of the auditor to correct it.

View Audit 373870

Finding 1164329 (2025-002)

Material Weakness 2025

Area Housing Commission

FL

Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Finding 2025-002 - Accounting Controls - capital Fund Grant Management (Cash Management)-ALN 14.872 Public Housing capital Fund - Noncompliance and Significant Deficiency Corrective Action Plan: AHC has assigned two Senior Managers with eloccs secure system) access. Person Responsible: Shlrley Hende...

Finding 2025-002 - Accounting Controls - capital Fund Grant Management (Cash Management)-ALN 14.872 Public Housing capital Fund - Noncompliance and Significant Deficiency Corrective Action Plan: AHC has assigned two Senior Managers with eloccs secure system) access. Person Responsible: Shlrley Henderson, Deputy Director, Arnesha Nuniss and Abe Singh, Ex. Dir. Who is waiting for his eloccs access Anticipated Completion Date: September 10, 2025.

View Audit 373767

Finding 1163593 (2025-001)

Material Weakness 2025

The Housing Authority of the City of Ozark, Alabama

AL

HUD Housing Programs

Corrective Action Plan (CAP) The Housing Authority of the City of Ozark, Alabama (Housing Authority) To the Department of Housing and Urban Development, During the audit of the Housing Authority’s fiscal year ended March 31, 2025 financial statements, it was determined that the Housing Authority did...

Corrective Action Plan (CAP) The Housing Authority of the City of Ozark, Alabama (Housing Authority) To the Department of Housing and Urban Development, During the audit of the Housing Authority’s fiscal year ended March 31, 2025 financial statements, it was determined that the Housing Authority did not perform annual HQS inspections for all units or conduct HQS re-inspections during the 30-day period required by HUD. Dannie Walker, Executive Director is responsible for implementing the corrective action plan. CAP developed to resolve audit findings: Finding 2025-001 - Section 8 HQS Inspection Deficiencies We concur with the recommendation and we will establish controls that ensure that annual inspection are performed, re-inspections are performed within the 30-day requirement and that HAP abatements are properly assessed. The Housing Authority is also planning on additional training for employees to make sure they are qualified to meet the HQS re-inspection requirements.

View Audit 373339

Finding 1163561 (2025-001)

Material Weakness 2025

Old Town Voa Affordable Housing, Inc. (penobscot River House) Me36-H0173

ME

Questioned Costs HUD Housing Programs

FINDING 2025-001 Corrective Action Plan Management will implement a process of identifying any surplus cash to be deposited into its residual receipts reserve account and a timeline to provide reasonable assurance that the remittance of the required deposits are done within the specified timeframe s...

FINDING 2025-001 Corrective Action Plan Management will implement a process of identifying any surplus cash to be deposited into its residual receipts reserve account and a timeline to provide reasonable assurance that the remittance of the required deposits are done within the specified timeframe set by HUD. Responsible party: Kayla Thurlow, Controller; (207) 373-1140 Anticipated completion date: No later than September 30, 2025

View Audit 373280 Questioned Costs: $1

Finding 1163431 (2025-001)

Material Weakness 2025

Community Housing Services - Wedgewood Ii, Inc.

UT

HUD Housing Programs

A last-minute change was made between our reconciliation of security deposits and the year end. We have set up a new control of locking our accounting system once the reconciliations & reviews are completed so no additional changes can be made without management being aware.

View Audit 373006

Finding 1163425 (2025-001)

Material Weakness 2025

Aiken County Commission on Alcohol and Drug Abuse

SC

HUD Housing Programs

The duties will be segregated as much as possible, and the Board of Commissioners will remain involved in reviewing the financial statements of the Commission.

View Audit 372966

Corrective Action Plans

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